Vodafone in the first quarter of the new financial year 2022/23 i total revenue they grew by 1,6%, while those from services saw a limited growth of 1,3%, a figure conditioned by the drop suffered in Germany as a result of the new telecommunications law. Vodafone believes it is “on track to meet FY23 guidance, with EBITDA adjusted between 15 and 15,5 billion euros and a cash flow rectified of around 5,3 billion euro”.
“We delivered another quarter of growth in both Europe and Africa in line with our expectations and saw an acceleration in business growth,” said the CEO. Nick Read. “While we are not immune to the current macroeconomic challenges, we are on track to deliver financial results for the year in line with our guidance. Our near-term focus on our operational and portfolio priorities remains unchanged,” Read concluded.
In detail, the total revenues of the British telecommunications giant rose in the first quarter of 2022/23 (one of the first European figures to fully deal with war events), to 11,278 billion euros, while those from services improved to 9,514 billion (+2,5% organically). Instead, the data relating to the Germany, Vodafone's largest market, saw service revenues at $2,857 billion, down 0,5% in both reported and organic terms due to losses seen in the broadband and TV sector after regulatory changes, he said. the company in a note.
Growth in Europe supported by the United Kingdom (+6,5%) and Türkiye
The decline in business in Germany was offset by a sharp increase in that in UK and Turkey where services revenue rose 35,8%, driven by higher inflation, impacting the group's services revenue growth by an additional 0,3 percentage point, the statement said.
The average revenues per mobile user (Arpu) per European consumer contract also did well, growing by 0,7% annually with the group adding 215.000 mobile customers and, conversely, losing 72.000 of its broadband ones.
In Italy revenues from services fall, broadband increases
Vodafone Italy ended the first quarter with service revenues of $1,052 billion, down 2,3% from the same period a year earlier, on an organic and comparable basis. A performance "influenced, in particular, by the ongoing competitive intensity in the mobile segment", says the note. In contrast, revenues from services fixed network, grew by 4,2% to 307 million.
There are 3 million broadband customers. The second brand "I have. Mobile” reached 2,9 million customers. Vodafone's fiber services are available to 25,9 million households and businesses, of which 9,2 million real estate units through its ultra broadband network and the partnership with Open Fiber.
Italian cities covered with 5G technology there are 60. FWA (Fixed Wireless Access) coverage is available for 3 million households, in over 5.000 municipalities in all Italian regions.
Vodafone Business has been awarded two macro-areas (Piedmont, Liguria, Valle d'Aosta and Abruzzo, Basilicata, Molise, Puglia) in the context of the recent Infratel tender to connect over 12.000 health facilities via broadband. Membership continues Voucher plan promoted by the MiSE to accelerate the digitization of SMEs in Italy. In the quarter Vodafone Business also signed the Consip "SGM" conventions for the provision of management and maintenance services for the technology park of public entities, the 'Security on Premise' agreement for security services and the one for the provision of professional services for migration to the Cloud. In June, the temporary grouping of companies made up of Inwit, Vodafone and Tim was awarded all 6 lots of the "Italia 5G" plan.
Decline in Germany due to new telecommunications law
The group's TV customers in Germany dropped by 79.000 units, while the service of cable broadband it recorded a decline of 34.000 units after regulatory changes that ended processes such as automatic renegotiation, resulting in a 0,5% drop in services revenue in the country. However, Vodafone says the loss of customers hasn't been as bad as it was in the previous quarter, after it fixed IT issues and started cutting back on customers due to the new law that took effect in December. “We have made good progress towards stabilizing our commercial performance in Germany and continue to actively pursue opportunities with Vantage Towers and to strengthen our market positions in Europe,” Read continued.
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